Ever Banega is to be loaned out by Valencia to Atletico Madrid for one season, according to sports daily Marca on Thursday.
Atletico will pay all of the salary of the Argentine midfielder - who helped his country to win the gold medal at the Beijing Olympics - and will have an option to buy him at the end of the season.
Atletico powered their way into the Champions League on Wednesday with a 4-0 thrashing of German side Schalke 04.
Banega, 20, has failed to impress at Valencia since being signed from Boca Juniors in January 2008, and is not part of the plans of new coach Unai Emery.
Emery is keen to reduce the size of the bloated Valencia squad from 32 to around 24, which means that several other players will be loaned out before the close of the summer transfer window on Sunday night.


Taipei - Taiwan stocks shed nearly 4 per cent in mid-morning trading Thursday, as all Asian markets slumped in reaction to overnight Wall Street falls.
Washington - Buying a new computer usually involves comparing models. Comparisons are more difficult than they used to be, as the number of choices has grown and manufacturers have started marketing computers with specific uses in mind.
Hamburg - Captain John Terry scored a late winner as England downed Germany 2-1 in an international friendly in Berlin Wednesday while Luca Toni helped salvage a draw for world champions Italy against Greece and European champions Spain overcame Chile.
Indian authorities have issued a birth certificate to a Japanese baby born to an Indian surrogate mother, easing the way for her Japanese father to take her home, news reports said Saturday.